53. The Internet would be considered a negative externality. 54. Transfer payments are one way the government can help with income inequality. 55. The welfare state came about to offset some of the laissez-faire systems of the past. 56. “Perfect competition” exists only when no single individual can influence the market price. 57. For whom goods are produced is a question that is largely answered by pricing the factors of production that people own. 58. Capital goods differ from other factors in that they are produced-they are outputs of the economic system. 59. Prices serve to ration the most scarce goods by making them more expensive. 60. Policies designed to promote economic efficiency never operate in opposition to policies designed to promote economic equity because efficiency implies that equity has been achieved. 61. In a production process more specialization is always preferred to less specialization. 62. In the U.S. the market system plays a critical role in deciding how much of current output is to be allocated to current consumption and how much is to be devoted to future consumption through the production of capital goods. 63. Capital goods are consumption goods stored in inventory for consumption sometime in the future.
